Okada’s Legal Woes Mounting

Universal Entertainment is suing former Chairman Kazuo Okada’s (l.) Aruze Gaming America. The company claims Aruze is not paying licensing fees for the use of its patents and is using patents without permission.

Japan’s Universal Entertainment Corp. is suing former Chairman Kazuo Okada’s Aruze Gaming America, alleging the company has not paid fees owed under a patent licensing agreement.

“Although the company has continued to issue citations to AGA, due to the latter showing no indications that it will comply with those citations, the company has brought a legal action,” Universal said in a complaint filed in a Tokyo court.

The suit, which comes in the wake of an in-house investigation that claims to have found three cases of suspected fraud on Okada’s part, also charges AGA with violating its patents.

“The company has verified that AGA has continued to use company-held patents without permission and that there is an extremely high possibility that it is manufacturing and selling products using those patents,” the company said.

Universal is seeking damages of 100 million yen (US$893,000).